What They Are Saying: Industry Leaders Express Support for Updating Transaction Reporting Requirements

What They Are Saying: Industry Leaders Express Support for Updating Transaction Reporting Requirements

Washington, D.C. - Earlier this week, Senate Banking Committee Chairman Tim Scott (R-S.C.) joined Senators John Kennedy (R-La.), Mike Crapo (R-Idaho), Mike Rounds (R-S.D.), Bill Hagerty (R-Tenn.), Cynthia Lummis (R-Wyo.), Katie Britt (R-Ala), Pete Ricketts (R-Neb.), and Bernie Moreno (R-Ohio) to introduce a bill to increase reporting thresholds for currency transaction reports (CTRs) and suspicious activity reports (SARs) under the Bank Secrecy Act (BSA). In addition, the Streamlining Transaction Reporting and Ensuring Anti-Money Laundering Improvements for a New Era Act (STREAMLINE Act) has received support from a variety of industry leaders in the financial sector.

"For decades, banks and credit unions have been weighed down by outdated reporting requirements and layers of unnecessary paperwork that make it harder for them to serve consumers and small businesses. By increasing the reporting thresholds for currency transaction reports and suspicious activity reports, we are bringing much-needed modernization to a law that should root out financial crimes, not get in the way of everyday Americans," said Chairman Scott.

"Washington's financial reporting requirements may have made sense in the seventies, but in today's economy, they simply weigh down our financial institutions. My STREAMLINE Act cuts red tape and modernizes these requirements, so law enforcement can focus on real criminals - not debanking hardworking Americans or drowning our financial institutions in burdensome paperwork. It's time to bring the Bank Secrecy Act into the 21st century and use a little common sense," said Senator Kennedy.

Here's what they are saying:

"In today's financial landscape, this requirement is not only outdated - it's inefficient, ineffective and increasingly counterproductive, resulting in a flood of data with minimal law enforcement utility and growing privacy concerns for bank customers," said Rob Nichols, President and CEO of the American Bankers Association. "Consistent with our strong support for common-sense BSA reforms that Treasury has advanced to allow banks to focus on real illicit finance risks such as fraud, we welcome this important effort to streamline and simplify complex reporting requirements to allow banks to focus on more targeted, risk-based efforts to combat financial crime and give law enforcement better tools to pursue real threats."

"Modernizing outdated Bank Secrecy Act reporting thresholds is a commonsense step that reduces unnecessary burdens without compromising safety or soundness. Once these rules are updated, credit unions will be able to devote more resources to serving their members and strengthening their communities while balancing law enforcement's needs," said America's Credit Unions President/CEO Jim Nussle.

"Current reporting thresholds under the Bank Secrecy Act are significantly outdated and capture far more transactions than originally intended… CTR and SAR filings are a primary source of community bank compliance burden and expense, diverting resources that could be better directed toward community lending," said Rebeca Romero Rainey, President and CEO of the Independent Community Bankers of America. "These updated thresholds will result in more targeted, useful information for law enforcement while allowing community banks to redirect resources toward serving their communities."

• Politico Pro: "Sen. John Kennedy (R-La.) and Banking Chair Tim Scott (R-S.C.) are leading the effort with a bill dubbed the STREAMLINE Act that would increase reporting thresholds for currency transaction reports and suspicious activity reports. The bill is the latest addition to Republicans' push to roll back an array of financial regulations that industry groups say are burdensome."

• American Banker: "Scott said the existing currency transaction reporting requirements are overly burdensome and result in law enforcement being flooded with reports that are not related to criminal activity, yielding little tangible benefit to either law enforcement or the banks. The new bill would reduce the number of reports, Scott said, and thus reduce the difficulties for banks, customers and enforcement agencies."

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